Minnesota man charged with felony for selling counterfeit coins

A 28-year-old man from Waite Park, Minnesota, on September 25 is expected to respond to a felony charge for theft-by-swindle stemming from selling counterfeit coins to three pawn shops in the greater Minneapolis area.

Eric Michael Johnson, identified in a complaint filed July 31 in Minnesota’s 7th Judicial District Court located in Stearns County, could face a maximum sentence of five years imprisonment and/or a fine of $10,000.

Johnson was arrested February 27, 2017, by Minnesota Department of Commerce Special Agent Joseph K. Boche in the Pawn America shop located in Anoka, Minnesota.

Special Agent Boche had stopped by the Anoka Pawn America shop to pick up video surveillance and to verify that coins Johnson sold to the shop on January 2 were fake when an employee told him that Johnson was there attempting to sell a 2009-P Australian gold $100 Kangaroo graded Mint State 69 encapsulated in a Numismatic Guaranty Corp. holder. Both the coin and the holder were determined to be counterfeit.

According to the complaint, Johnson in a Mirandized statement admitted to purchasing coins on the Chinese web site Aliexpress.com. He further admitted that he had purchased the fake Australian gold coin for $115 and was attempting to sell it for $900 to make a profit.

Special Agent Boche had opened his investigation into counterfeit coins being sold in the area on February 16 when a coin collector notified him that he had purchased a 1909-O $5 Indian Head half eagle in a Professional Coin Grading Service holder for $4,999 plus tax from Pawn America located in the city of St. Cloud. The collector fell on ice on his way home and the top corner of the PCGS holder broke off. He went to Central States Coins shop seeking to return the coin to the grading service so it could be re-encapsulated. A week later Central States Coins notified him that the coin could not be recertified because it was counterfeit. The PCGS holder was also determined to be fake.

Special Agent Boche checked the Automated Pawn System and learned that Eric Michael Johnson had sold the coin to Pawn America and that since June of 2016 he had sold six rare U.S. gold coins encapsulated in NGC and PCGS slabs and a Perth Mint gold bar to Pawn America stores in the cities of Anoka and St. Cloud as well as Max It Pawn, also located in St. Cloud. All of the coins, as well as the bar and all of the holders, were determined to be counterfeit. All of the counterfeits were seized by law enforcement. (Continued below).

According to the complaint, the total aggregate value of the transactions completed by the Johnson was $4,340.50. Had the coins been genuine, their value would have been far greater. For example, had the 1929 Indian Head half eagle, graded MS-62, been a genuine coin in a genuine PCGS holder, its market value would have been $42,500.

Beth Deisher, director of ICTA’s Anti-Counterfeiting Task force.

“While this may appear to be a small case, it is important to understand that this type of illegal activity is happening throughout the United States,” said Beth Deisher, director of anti-counterfeiting at the Industry Council for Tangible Assets. “The ease with which dishonest people can order counterfeit coins and bars from China and sell them in the United States makes it a crime of opportunity.”

ICTA’s Anti-Counterfeiting Task Force is working with law enforcement on all levels to bring counterfeiters and those who traffic in counterfeits to justice. A member of the Anti-Counterfeiting Task Force played a role in apprehending the defendant in this case.

Deisher noted that if you are offered coins at below market value, particularly from a Chinese seller online or from people you don’t know in the United States, there is a high probability the coins and bars are counterfeit. “It’s best to deal with professional coin dealers whose credentials you can check and from those who have been in business for years,” Deisher said.

Coin Update is not a retail website. If you wish to buy a coin or banknote, you should contact a reputable dealer. One of our sponsors (see ads at right and top of page) may also have what you’re looking for, so be sure to check out their websites.

Per policy, we do not advise on the value, authenticity, or rarity of readers’ coins and banknotes. For this kind of assistance, you should contact a reputable dealer, preferably one who’s certified by the American Numismatic Association and/or the Professional Numismatists Guild.

Vulgar and/or abusive comments will not be tolerated. Nor will trolls.

Allegations of fraudulent or criminal activity against a named party, when said activity has not been proven in a court of law, will be removed.

Categories

More Recent Articles

The Mint of Finland announced (20th February) that new €2 commemorative coins will be issued which focuses on one of the country’s more popular activities which is not only synonymous with Finnish culture but also has a tradition that spans back centuries — going to the sauna. These small rooms were either built into larger […]

Welcome to the latest installment in my series on the subject. I highlight some of those featured in the best-selling Whitman book, 100 Greatest American Medals and Tokens. This week I feature the prize medal issued to exhibitors at the World’s Columbian Exposition. I have a personal connection to this event. The first “rare coin” […]

(Long Beach, California) February 19, 2018 — Many of the historic English coins that will be displayed at the February 22-24, 2018 Long Beach Expo in the upcoming inaugural exhibit of rarities from the privately owned Tyrant Collection are so rare that they were seen only in European museums. Some of the coins in the “Tyrants […]

The Central Bank of Samoa have launched (29th January) a series of new coins which pay tribute to some of the Tennis World’s great Czech legends. A total of five coins comprise the set and honour five of the Tennis World’s greatest and most celebrated players whose careers have taken them to great heights of […]

In my previous article discussing the rise of Bitcoin as a possible form of digital bullion, I compared and contrasted its measure of value in comparison to gold and silver bullion. When I wrote my first article, the value of Bitcoin was rising toward an impressive $20,000 in value, and — as experts had predicted […]

The government and treasury of the British Virgin Islands have issued their second silver bullion crown in response to last year’s very successful Pegasus bullion coin. Horses have often featured on the reverse side of the coins issued from the British Virgin Islands over the years, and choosing a depiction of Pegasus seems fitting to […]

The Royal Mint has added four additional coins to their extremely successful Beatrix Potter 50-pence coin series. The coins were initially issued in 2016 in celebration of the 150th anniversary of the author’s birthday. The new coins include a new reverse design of the ever-popular Peter Rabbit and include three new companions to our furry […]

P.F.M. Morgan Dollar and Crow River Peace Dollar Collections will anchor special “Dollar Day” as part of Legend’s Regency Auction 26 in New Orleans (2/14/18 Lincroft, New Jersey) — On Valentine’s Day, Legend Rare Coin Auctions proudly announced the consignment of the P.F.M. Collection of Morgan Dollars, the current #6 PCGS Registry Set in the […]

The Reserve Bank of Fiji have released (19th February) new coins which feature one of the country’s more common symbols of their diverse wildlife and bio-spherical habitation — the Fijian yellow tree frog. The coin is struck in titanium with colour, and is the second coin featuring Fijian wildlife and native plants. The Islands of […]

The Royal Canadian Mint have launched a new coin which remembers the 25th anniversary of one of Canada’s most prestigious honours that is associated with the military and service to the nation. Established on the 2nd February 1993, with royal ascent by Her Majesty Queen Elizabeth II, the Star of Military Valour is one of […]